What to keep in mind
Review available liquidity information, board decisions, transactions with insiders and the timing and effect of management measures.
Ignoring severe risks or diverting assets may increase personal exposure.
Distinctions often confused
Business failure alone is not automatic proof of directors' wrongdoing.
Frequently asked questions
Are directors liable whenever a company becomes insolvent?
No. Individual acts, breaches, damage and causation must be assessed.
Should decisions during a crisis be documented contemporaneously?
Yes. Reliable minutes and supporting analyses can be important.
Informational content. It is not a substitute for professional advice.